Key points: Major mining companies are getting rid of some of their biggest and most expensive operations that are unprofitable. This could result in positive earnings growth ahead.
Steve Todoruk joined Sprott Global Resource Investments Ltd. as an Investment Executive in 2003. He has argued that the recent wave of write-offs might help the market for exploration and mining stocks.
But the pain before the possible upside is still coming: Alaska’s “Pebble” deposit just bit the dust. Steve talked me through these events and what it means for shareholders in mining stocks.
“The Pebble deposit is one of the largest discoveries of a copper-gold deposit in the last 10 years. A well-known Canadian exploration company called Northern Dynasty Minerals (run by the Hunter Dickenson Group) made the original discovery. In 2007, Anglo American PLC, based in London, entered as a joint venture partner to provide capital for the very expensive ongoing development work.”
Northern Dynasty and Anglo American had discovered a total of 81 billion pounds of copper, 107 million ounces of gold and 5.6 billion pounds of molybdenum at the Pebble deposit.
To read this interview in full please click here.
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